A Severe Energy Crisis Threatens Eastern Europe

“The World Bank has warned that Eastern Europe, Russia and Central Asia will be threatened by a severe energy crisis in five or six years, if billion-dollar investments are not immediately made for tapping into new gas and oil sources, for retrofitting an ailing pipeline and for reducing waste of energy, [in a new report titled Lights Out? The Energy Outlook in Eastern Europe and the Central Asia.]…

‘By 2030 the region could become a net importer of natural gas,’ World Bank Director for Sustainable Development in Europe Peter Thomson said Thursday in Brussels….” [Die Presse (Austria)]

Xinhua adds that “…according to the report, demand for primary energy in the region was expected to increase by 50 percent by 2030, while demand for electricity was expected to increase by 90 percent…. The report showed the current financial crisis created some breathing room and a window of opportunity for the region to take mitigating actions since energy demand had been significantly dampened. ‘But this is only a temporary respite before energy availability again becomes a serious concern. Once growth picks back up, so, too, will energy consumption,’ it said….” [Xinhua/Factiva]

UzReport writes that “…if energy production is to be maintained or increased to meet Europe&apos;s energy requirements, significant investment will be required. The projected needs for primary energy development from 2010 to 2030 are estimated to be on the order of almost $1.3 trillion in order to ensure the availability of oil, gas, and coal.

In addition, the region&apos;s power sector infrastructure is in desperate need of upgrading. Electricity capacity has hardly increased since the early 1990s and plants are getting old. Investment needed in power sector infrastructure over the next 20 to 25 years is on the order of $1.5 trillion, with a further $500 billion required for district heating….” [UzReport (Uzbekistan)/Factiva]